ECB’s Kazāks: Could Consider October Cut If Economy Unexpectedly Tanked

13 September 2024

By Marta Vilar – MADRID (Econostream) – European Central Bank Governing Council member Mārtiņš Kazāks stated on Friday that the ECB would consider a rate cut in October if the economy slumped more than expected and inflation receded significantly.

Speaking in a podcast of Latvijas Banka, which he heads, Kazāks said, ‘The probability of a rate cut in October, if we look at the financial markets, isn’t big’.

‘[I]f there’s an unexpected hit to the economy, and if the economy feels significantly weaker than is currently expected and inflation also significantly declines, then of course we could also consider a rate cut’, he said.

Inflation was not completely defeated, according to Kazāks, because services prices increases are still high.

Wage growth was now higher than the general price increase, meaning that consumers had more money that would be spent and help the economy grow more strongly, he said.